Guernsey approves plan to keep mortgage interest tax relief

By The Financial Edition · 3 November 2026 · 16:56 GMT · BBC Business · 1 min read

Photograph: Diego Delso, delso.photo · CC BY-SA · sector illustration, not event evidence

Budget Amendment and Relief Cap

The States of Guernsey approved an amendment to the Budget brought by Deputy Aidan Matthews to keep tax relief on interest paid on mortgages. The decision stops the phased withdrawal of the relief that had been agreed in 2015, which was frozen between 2024 and 2026. Homeowners can apply for tax relief on interest paid on the mortgage of their principal residence up to £3,500 a year.

Debate Over Timing and Market Pressures

During the debate, Deputy Neil Inder opposed the move, stating it would add £20m to the budget if all amendments passed. Alderney representative Alex Snowdon supported the timing, pointing out that many residents work multiple jobs to support their mortgages amid higher interest rates and rising house prices. Conversely, Deputy Jayne Ozanne highlighted an inequality between average monthly rents exceeding £2,000 and average mortgages of £1,000, noting the relief does not assist those struggling to save for a deposit.

Why it matters

Homeowners in Guernsey retain up to £3,500 a year in tax relief on mortgage interest as planned phase-outs are halted, preserving borrowing support despite broader debates over housing affordability and budget pressures.

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